This is a message to the traditional financial institutions.
Below is an excerpt from the daytrading report. While I believe that many of the daytrading firms are guilty of extravagent promises, this report is nothing more than promotional literature for the traditional brokers.
A key phrase is in the first sentence of the definitions, "Day trading firms differ from traditional brokerage firms in that they provide the means for customers to trade their own accounts...". It becomes self-evident that they are promoting that trading our accounts is somehow wrong! That we should give our money to the traditional brokers and let them trade it, because they know what is good for us. The incredible gaul of these people boggles the imagination.
It is the incompetance, greed and outright dishonesty of many of the traditional financial institutions that has led to our current situation.
I will make my financial decisions, not you! I will decide what and when to buy and sell, not you! Keep your hands off of my money!!!
A. Definition
Day trading firms differ from traditional brokerage firms in that they provide the means for customers to trade their own accounts, and promote and facilitate a particular type of trading. They also furnish customers with information on order flow and provide electronic execution of orders. Customers may trade through equipment at firms' offices or from their own computers that are equipped with the firms' special software.
The firms' customers, the day traders, attempt to make profits on small changes in the prices of stocks. They are known as day traders because they make intra-day trades, i.e., they are taught to close out positions by the end of each day.
Traditional brokerage firms, by contrast, have focused on making recommendations to customers, processing orders from customers, and handling accounts on a discretionary basis. Traditional firms have some customers who trade; however, the level of activity in these customers' accounts is considerably less than the trading that takes place at day trading firms.
Day trading firms differ not only from traditional brokerage firms, but also from traditional discount brokerage firms. Discount brokers tend to passively accept orders from customers, eschewing the making of recommendations. In contrast, day trading firms promote day trading as a strategy, or a program of investment. They also often market courses in trading to their prospective brokerage customers; the courses include recommendations of trading strategies. In addition, firms commonly offer the services of trainers or coaches. |
